Arizona Lithium to acquire Canada's highest grade lithium brine resource
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(Kitco News) - On Tuesday, Arizona Lithium (ASX: AZL, OTC: AZLAF) announced that it has entered into a binding pre-acquisition agreement to acquire 100% of Prairie Lithium Corporation, one of Canada's most advanced lithium brine companies, and one of the most advanced direct lithium extraction projects globally.
The company said that Prairie's JORC inferred mineral resource is 4.1 million tonnes of lithium carbonate equivalent (LCE) at 111 mg/L Li, which is the highest quality inferred lithium brine resource in Canada discovered to date, with significant expansion potential.
"Acquisition represents a 1,200% increase to AZL's global lithium resource, now 4.4MT of LCE (inferred and indicated)," the company noted in a statement.
Importantly, AZL said that the acquisition includes a proprietary direct lithium extraction (DLE) technology that removes lithium from brines and ore bodies, adding that Prairie currently operates its DLE technology plant in Saskatchewan, using brine from wells Prairie have drilled.
"The Prairie lithium DLE technology has been tested on the Big Sandy resource with promising results, and the acquisition will allow Arizona Lithium to have access to the technology, and for testing at the Lithium Research Centre for both Prairie Lithium and Arizona Lithium's resources," AZL said.
Pursuant to the terms of the transaction, AZL, directly and indirectly through CanCo, has agreed to offer to all the Prairie Lithium shareholders as at closing of the transaction, $40,000,000 Canadian Dollars and 500,000,000 AZL shares (approximately 15% of AZL shares outstanding).
Arizona Lithium Limited is an ASX listed company that holds 100% of the Big Sandy low-cost lithium project in America's battery corridor, with a JORC resource of 320,800 tonnes lithium carbonate equivalent.
As announced on 20 June 2022, Arizona Lithium signed a 5-year lease to establish a world class Lithium Research Centre to be located on a 9,700m2 property in Tempe, Arizona, approximately 15km southwest of Phoenix Sky Harbor International Airport.
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